JPMorgan Chase & Co. Cuts Ares Capital (NASDAQ:ARCC) Price Target to $19.00

Ares Capital (NASDAQ:ARCC) had its target price lowered by JPMorgan Chase & Co. from $22.00 to $19.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the investment management company’s stock. JPMorgan Chase & Co.‘s target price would indicate a potential upside of 6.42% from the company’s previous close.

A number of other equities research analysts also recently issued reports on ARCC. Wall Street Zen downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Wells Fargo & Company decreased their target price on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a report on Thursday, February 5th. B. Riley Financial reiterated a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. Finally, Royal Bank Of Canada decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $21.63.

Ares Capital Stock Performance

Shares of NASDAQ ARCC traded down $0.22 during mid-day trading on Friday, hitting $17.85. The company had a trading volume of 4,661,117 shares, compared to its average volume of 7,514,335. The company has a market capitalization of $12.82 billion, a price-to-earnings ratio of 9.59 and a beta of 0.59. Ares Capital has a 1 year low of $17.59 and a 1 year high of $23.42. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. The stock’s 50-day moving average price is $19.74 and its 200-day moving average price is $20.31.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business had revenue of $793.00 million for the quarter, compared to analysts’ expectations of $795.20 million. During the same quarter in the prior year, the firm posted $0.55 EPS. The firm’s quarterly revenue was up 4.5% on a year-over-year basis. On average, sell-side analysts forecast that Ares Capital will post 2.19 earnings per share for the current year.

Insider Activity

In other news, CFO Scott C. Lem acquired 5,186 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average cost of $19.29 per share, with a total value of $100,037.94. Following the acquisition, the chief financial officer owned 39,463 shares in the company, valued at approximately $761,241.27. This represents a 15.13% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael Kort Schnabel bought 12,500 shares of the business’s stock in a transaction on Thursday, February 5th. The stock was purchased at an average cost of $19.13 per share, with a total value of $239,125.00. Following the purchase, the chief executive officer owned 40,500 shares of the company’s stock, valued at $774,765. This represents a 44.64% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Ares Capital

Several institutional investors have recently added to or reduced their stakes in ARCC. Morgan Stanley boosted its holdings in Ares Capital by 2.0% during the 4th quarter. Morgan Stanley now owns 17,558,581 shares of the investment management company’s stock valued at $355,210,000 after acquiring an additional 341,578 shares during the period. UBS Group AG lifted its position in Ares Capital by 41.8% in the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock valued at $226,615,000 after purchasing an additional 3,301,890 shares during the last quarter. Bank of America Corp DE lifted its position in Ares Capital by 8.9% in the second quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock valued at $190,572,000 after purchasing an additional 705,882 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Ares Capital by 18.6% during the second quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company’s stock valued at $140,651,000 after purchasing an additional 1,006,460 shares during the period. Finally, Legal & General Group Plc grew its holdings in shares of Ares Capital by 16.4% in the fourth quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company’s stock worth $109,432,000 after purchasing an additional 761,838 shares during the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.